Old people claim that children can't differ between animated violence and real violence, right? But did you,as a gamer, ever look at ingame screens and think was a photorealistic movie? Even nowadays, you can tell the difference between animation and reality, and here lies the crux. Old people(politicians) are not used to animated graphics and are overwhelmed and shocked by the detail and realism, assuming that everyone must react the same way. Remember the N64 or GC graphics? They blew my mind, as I had never seen such graphics before. This is also the reason why Counter-Strike is always used as a prime example for violence, even though the graphics are not really detailed.
tl;dr: Reasonable people should be able to tell the difference between simulation and reality.